Terra Energy Corp.

Terra Energy Corp.

March 28, 2006 09:00 ET

Terra Energy Ties in 600 BOED of Production at Septimus

CALGARY, ALBERTA--(CCNMatthews - March 28, 2006) - Terra Energy Corp. (TSX VENTURE:TTR) ("Terra Energy" or the "Company") would like to announce that it has successfully completed the construction of its Septimus Pipeline. The completion of this project increases the Company's production level from 2600 boe/d to approximately 3200 boe/d.

In prior media releases, Terra Energy announced it's intention of constructing a 6 inch gas pipeline commencing at the Company's 15-34-81-19 W6M gas well and extending to the Company's compression and dehydration plant located at 10-34-82-20 W6M (the "Wilder gas plant"). This project has been referred to as the Septimus Pipeline, as it connects gas wells in the Company's Septimus Field to the Company's Wilder gas plant. The Septimus Pipeline is being constructed by the Company on a 100% basis.

The construction of this seventeen (17) kilometre pipeline necessitated a crossing of the Pine River. The crossing itself was technically challenging and required the drilling of a borehole under the river, which was more than half of a kilometre in length. On February 27, 2006, the borehole hit its target on the south side of the river and the hole was then reamed to a 14 inch diameter on February 28, 2006. On March 3, 2006, the 6 inch diameter pipeline, enclosed in a protective polymer lining, was pulled through the borehole and under the river. This process ensured that little or no damage would be done to the river itself and the surrounding embankments. In addition to the river crossing itself, there were two other boreholes required on this project. The commissioning of the pipeline took place during the week of March 20, 2006, and gas is flowing today. Visuals of the Septimus Pipeline construction are posted on the Company's website at www.terraenergy.ca.

Initial rates of raw gas through the Septimus Pipeline are estimated to be approximately 3.6 MMcf/day or 600 BOED. This is one of three pipeline tie-in projects that Terra Energy has been working on, all with a view towards reaching the Company's short term production target of 4,000 BOED. Announcements concerning the other two projects are anticipated to be made within the coming weeks.

Volume Reporting

The term, boe, may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Statements:

Certain information set forth in this media release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Terra Energy's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Terra Energy's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking-statements will transpire or occur, or if any of them do so what benefits Terra Energy will derive therefrom.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Terra Energy Corp.
    Mr. Bud Love
    Vice-President of Finance and Chief Financial Officer
    (403) 699-7777
    Website: www.terraenergy.ca